100k pension pot at 42

[hlu2]

I've finally checked my pension pot and age 42 it's currently 100k. Putting into random calculators, it seems ok at current money but with inflation in 25 years time, it seems tiny. And yes I should have been keeping up with this more, but I didnt start working until I was 30 (postgrad degrees and two pregnancies) so have only had 12 years of working and saving and with two kids and a house - pensions just didnt seem all that relevant until now. How much does everyone else have around this age?

£60k is a good salary, and is well above average.

But if you're only putting £3k a year into a pension I would say this isn't enough. Obviously you can only do what you can afford (and many people wouldn't be able to afford that) and I don't know your other outgoings, but I would personally be prioritising pension a little more. But I think it needs to be looked at as a whole, with all your other finances (which I'm not expecting you to go into here) so it's hard to say

Op has worked hard on her education for that salary, I don't see why humility is necessary. It's a reasonable salary for someone with a phd in a useful subject, which presumably it is.

No, op, £3k per year is not a good contribution level. Can you afford more with your current outgoings? If it's not a defined benefit or contribution pension then I'd definitely pay a lot more in. Better to do it younger while it can still earn you money.

I don't know about age 42 as we only started looking at pensions then!
Age 50 my friends have between £250k and £850k in pension pots. Some will have to retire soon because they are too near the £1mil. limit. So in the next 10-15 years that could be a target. As I said I am poor with only £150k but I now put at least £20k a year in.

Indeed eyebrows. And that's why it's really important people are allowed to discuss it without unhelpful posts accusing people of all sorts of absolute nonsense

I'm 43 and putting in 3k per year.

I maybe have £20k in it at the mo.

To be honest I live a minimalistic lifestyle so just aiming to make sure I have a mortgage free roof over my head for retirement and a little bit more to add to my state pension.

As long as I've got healthy food to eat, a warm house in a peaceful area, free nhs, friends and family in retirement then a modest regular income will do. 😀

Take the holistic view and it will put the finances into perspective.

The best things in life are free... a cliché but worth reminding yourself when it comes to pensions!

45 and £22.00 which currently works out at £1.03 per year payout or something.

Would anyone advise op open up a sipp or other savings like an ISA?

Get over yourself. There are shocking levels of financial illiteracy in this country, and the pension system is a complete joke which is going to see huge numbers of people living in poverty in 20years if it is not dealt with. The government has no interest in doing so, therefore we all need to be having more conversations about it.

Women also tend to be more vulnerable as they tend to take more time off work (how many couples factor in pension contributions for a sahm?). And yes 100k is a lot of money, but not great to retire on, and that needs to be talked about, not burying heads in the sand and lashing out at others who want to talk about it.

Actually it might be less than that😂 I get a pension statement but never check them.

To answer your Q- £130 k and about the same in ISAs, mid 40s. Planning to downsize on retirement in order to top it up.

How much is your employer putting in? There are lots of calculators online that will tell you what you're on track for- just have a google.

@Unbridezilla

Well said.

I wish mnhq would be more alert to posters that try and close down valuable discussion like this.

OP you are not showing off at all, its a reasonable question, honestly people on here are not allowed to earn a decent wage without being slated!
I think it was sensible to put your inheritance into your pot to make up for lost years. I to don't know how much my pension pot is worth and its made me think I should start looking! maybe speaking to a financial advisor with expertise in pensions would help, they will work out what you need for retirement and how much you need to put into your pot. My husband is only able to put 5% into his pot so we have opened a LISA to help top his up. Mine is a mix of NHS and teachers pension so should be OK

Sorry you've had some strange responses. People shouldn't only be able to ask for advice if they have no money at all.
100k may seem a lot but actually I would suggest that it's right to ask about it and to look at increasing contributions if possible, as it would not go that far in retirement.
Perhaps this isn't the right place to ask unfortunately, but other posters are right, women need to talk more about this.
I suspect most men would have more in their pension pots but also not feel they shouldn't look at how they can increase it further!

So where should the OP get financial advice and discussion?
It could actually be motivating and inspiring to others to have these conversations and know what is possible.
Perhaps you should avoid these threads if you think they are distasteful.
Personally I think it's more distasteful to attack others for asking genuine questions and trying to learn more.

If you don't like this sort of discussion then just move past it there are plenty of people that do.

Salary of £60k, £3k per year contribution, £250 per month is not that much. Could you increase? I am paying more into my pension than that, and on a less salary, 2 part time jobs.

I'm 39 and have about £90k in mine, I didn't start saving until I was 32. I read at the time that you should put half your age as a % into it, so as I was 32, I started contributing 16% of my salary. I then gradually increased to 20%. If I continue contributing as I am, my pot is estimated to reach £1.1m by retirement - and the modeller tool is still telling me that I'm not saving enough!! I would say 3k a year is nowhere near enough, can you gradually increase it a % at a time?

I would say you are about right based on your current salary, very similar to my scenario.

Mine is also 100k at 40. Salary was around 20k at 21 gradually upped to 60k now. Had 3-4 years without contributions in the middle whilst self employed.

I do pay in more now though to keep it going/ catch up. My contribution now is 15%, company put in 5%.

Likely offend some of the posters on here but a common thing in our office is people increase contributions by half the annual pay rise, before you see it.

this is quite helpful as a starting point www.unbiased.co.uk/discover/pensions-retirement/managing-a-pension/paying-into-your-pension#:~:text=What%20is%20a%20good%20pension,by%20the%20time%20you%20retire.

We need to welcome conversations about topics like this.

The OP earns 60k. Everyone I know that ears that has worked bloody hard for it.

The OP has also discovered that she needs to make more in contributions - that's great for her financial security moving forward.

Honestly, why can't people just accept that people are in a better/worse position that themselves. And why can't people talk about anything that isn't poverty related without it being seen as boastful.

Some posts are just ridiculous/unhelpful and screaming of envy.

That's a decent pot, but it won’t go that far in retirement. I’d up your contributions if you can. I’m fortunate to have a DB pension which will pay a generous amount, so I don’t have a pot as such.

I think it’s important to openly discuss pensions. The envy from some people on here is so sad.

You speak like you're doing some kind of public service 😂

"Called out" - what a load of old tosh. Just hide the thread and move on....

OP, fwiw I am 42 and my pension pot is about £100k. Like you, I worry it's not enough though and have balanced my finances to increase my contributions considerably soon.

What rubbish. People can discuss pensions regardless of how much they have anyway but 100k in the pot isn’t a huge amount. The average teacher or police officer would have a much larger pot at that age for example.

So, I'm in my late 50s with a stakeholder pension pot of 150k ish ( built up by paying in 2880 a year and getting the government tax relief top up to make it up to 3600). I've just bought an annuity with it.
The exact amount will vary depending on a person's age and health. It has bought me a quarter of the amount as a lump sum and and about £3800pa lifetime annuity which will rise yearly according to the retail price index.
100k is really not a lot for a pension pot. It won't be anywhere enough to live on on its own but would supplement the state pension.

Are you married/partner, do they earn over 60k?

Assuming you receive child benefit, you want to keep your net pay under 50k or you have to pay some back.

That was another reason why I started to increase mine.